By Jonathan Davies

The amount spent on advertising by marketers in the UK is set to rise, despite falling confidence, according to the latest Bellwether report from ad trade body the IPA.

More than a quarter of marketers surveyed said they had increased their budgets for the three months to the end of September. Just 13% said they had reduced them, giving a net increase of 12%.

But where marketing firms plan to spend the money is indifferent. The biggest rise is set to come in the events industry. But budgets for internet spending will only rise by an average 6.4%, the slowest rise for two-and-a-half years.

Although budgets are increasing, confidence is falling. The report said the net balance of optimism over the company's future fell by more than 25%.

“At the headline level, the Bellwether for Q2 2015 provided further positive news on marketing activity in the UK, with growth being extended to just short of three years and at a rate that remained historically strong,” said Paul Smith, senior economist at Markit and author of the Bellwether report.

“Below the surface, however, the underlying drivers of growth are a little harder to read. On the one hand, companies are showing an increasing willingness to engage in corporate hospitality, conferences and sponsorship.

“But belying this confidence is an increased willingness to engage in discounting and promotional activities designed to support sales at a time when the economic and financial outlook for companies has become just a little more uncertain. Whereas we see growth holding up in 2015 overall, the latest survey supports the projection of softer expansion further out.”